*  LIBRARY 

UNIV 

SA?  : 


OP 

iA 


NEGRO  PROGRESS  IN  A  MISSISSIPPI  TOWN 

BEING  A  STUDY  OF  CONDITIONS  IN 
JACKSON,  MISSISSIPPI 

BY 

D.  W.  WOODARD 

TUSKEGEE  INSTITUTE.  ALABAMA 


NEGRO  BANKS  OF  MISSISSIPPI 

BY, 

CHARLES  BANKS 

MOUND  BAYOU,  MISSISSIPPI 


COMMITTEE  OF  TWELVE 

FOR  THE  ADVANCEMENT  OF  THE  INTERESTS  OF  THE  NEGRO  RACE 
CHEYNEY.  PA. 


ifb  ! 


NEGRO  PROGRESS  IN  A  MISSISSIPPI  TOWN 

BEING  A  STUDY  OF  CONDITIONS  IN 
JACKSON,  MISSISSIPPI 

BY 

Vr^£y   De  W<  WOODARD 

>u 

TUSKEGEE  INSTITUTE,  ALABAMA 


NEGRO  BANKS  OF  MISSISSIPPI 

BY 

CHARLES  BANKS 

MOUND  BAYOU,  MISSISSIPPI 


COMMITTEE  OF  TWELVE 

FOR  THE  ADVANCEMENT  OF  THE  INTERESTS  OF  THE  NEGRO  RACE 
CHEYNEY.  PA. 


£  -'              I 

US  13  ! 

Ml,  ! 
Wt 


THE  BIODLE  PRESS 
1010  Cherry  St..  Phila. 


NEGRO  PROGRESS  IN  A  MISSISSIPPI  TOWN 

BEING  A  STUDY  OF  CONDITIONS  IN 
JACKSON,  MISSISSIPPI 

BY 

D.  W.  WOODARD 

TUSKEGEE  INSTITUTE,  ALABAMA 

Mississippi,  largely  devoted  to  agricultural  pursuits,  is  a  state  of  small 
towns.  Several  of  these  towns  stand  out  prominently  by  reason  of  their 
rapid  growth  during  the  last  twelve  years — a  period  remarkable  for  an  un- 
precedented development  of  the  natural  resources  of  the  state. 

Perhaps  no  one  of  these  towns  has  shared  in  this  general  growth  and 
prosperity  more  fully  than  the  capitol,  Jackson.  The  last  dozen  years  have 
seen  many  changes  in  the  town  of  Jackson.  The  confines  of  the  town  have 
been  extended  to  the  west  and  north  to  include  several  outlying  Negro  com- 
munities ;  and  recently  the  almost  exclusively  white  suburb,  Duttonville,  has 
been  received  into  the  corporation  by  popular  vote.  Large  lumber  and 
cotton  seed  oil  mills,  giving  employment  to  hundreds,  have  been  established. 
New  railroads,  opening  up  to  commercial  purposes  as  never  before  the 
natural  resources  of  the  district  in  which  the  town  is  situated,  have  multi- 
plied its  importance  as  a  trade  center  many  times.  The  'establishment  of 
large  department  stores,  the  extension  of  business  enterprises  in  all  direc- 
tions, the  erection  of  larger  and  more  modern  buildings  for  such  purposes, 
some  public  improvements  on  a  more  or  less  limited  scale,  are  giving  to 
the  town  an  urban  air. 

The  Negroes  of  Jackson,  who  have  always  outnumbered  the  whites, 
but  who  at  present  constitute  about  one-half  of  the  population,  have  figured 
largely  in  this  era  of  greater  prosperity  for  the  town.  Twelve  years  ago. 
with  two  conspicuous  exceptions,  the  Negroes  were  not  reckoned  in  the 
business  life  of  the  town.  Comparatively  few  of  them  owned  property,  and 
that  for  the  most  part  consisted  of  the  homes  occupied  by  them.  A  few 
fraternal  societies,  the  churches,  and  a  periodical  organization  at  the  time 
of  national  elections,  constituted  all  there  was  of  associated  life  among  the 
Negroes  of  the  town. 

Today,  according  to  an  official  of  the  town,  the  8000  or  more  Negroes 
own  one-third  of  the  area  of  the  town.  Statistics  of  the  condition  of  prop- 
erty ownership  among  the  Negroes  of  twelve  years  ago  are  not  available, 
and  only  the  citizen  acquainted  with  the  situation  at  that  time  can  apprec- 
iate the  great  advance  on  the  part  of  the  Negroes  implied  in  the  above  es- 
timate. While  it  was  practically  impossible  at  the  time  of  this  inquiry  to 
determine  accurately  the  amount  of  real  estate  possessed  by  the  Negroes, 
the  real  property  assessment  of  566  Negroes,  as  recorded  in  the  tax  books 
of  the  town,  amounted  to  $581,580.00  with  an  average  of  $1,027.52  to  the 
individual.  It  is  significant  that  but  83  of  these  assessments  were  under 


$500.00,  showing  that  almost  all  of  this  property  is  in  an  improved  condi- 
tion. More  than  one-third  of  the  assessments  were  above  $1000.00;  while 
six  of  them  were  for  amounts  greater  than  $5,000.00.  The  largest  single 
assessment  was  that  of  $23,800.00.  It  is  to  be  remembered  that  these  fig- 
ures refer  to  the  real  property  only  of  the  566  Negroes  mentioned. 

At  present  one-half  of  the  Negro  families  of  the  town  own  their  homes. 
This  fact  was  brought  to  light  in  an  investigation  made  of  543  houses  occu- 
pied by  Negroes  in  various  parts  of  the  town.  While  one-half  of  the  Negro 
families  own  the  homes  occupied  by  them,  more  than  two-thirds  of  the 
houses  in  which  Negroes  live  are  in  the  possession  of  members  of  their  own 
race.  In  the  canvass  mentioned  above,  400  out  of  the  543  families  were  in 
houses  owned  by  Negroes.  This  shows  that  the  rent  paid  by  Negroes  to 
other  Negroes  throughout  the  town  is  no  inconsiderable  item.  Thus,  in  the 
543  houses,  the  169  families  that  rented  from  Negro  owners  paid  to  them 
yearly  more  than  $13,000.00.  It  may  be  interesting  in  this  connection  to 
state,  as  indicative  of  the  thrifty  character  of  those  that  did  own  their 
homes,  that  more  than  one-half  of  these  had  other  property  than  the  homes 
occupied  by  them.  And  this  property  of  the  Negroes  reflects  a  growing 
consciousness  of  a.  better  way  of  living.  One  has  only  to  observe  the 
dwellings  in  a  Negro  district,  for  the  Negroes  have  always  been  severely 
districted  to  themselves,  to  find  in  the  many  comfortable,  and,  in  many 
instances,  tastefully  furnished  homes,  evidences  of  this  fact. 

The  activity  of  Negro  real  estate  dealers  and  of  the  two  Negro  banks, 
and  the  easy  terms  on  which  homes  can  be  bought,  especially  in  a  tract 
outside  of  the  town  set  aside  exclusively  for  Negroes  by  an  enterprising 
firm  of  white  real  estate  dealers,  have  done  much  to  encourage  the  owner- 
ship of  property  on  the  part  of  Negroes.  I  was  surprised  to  find,  again  and 
again,  even  in  the  humblest  of  the  rented  homes,  that  the  occupants  were 
saving  from  their  meager  earnings  the  monthly  payment  on  some  lot  on 
which  they  hoped  to  build  the  future  home.  It  is  a  noteworthy  fact,  also, 
that  these  more  recently  built  houses  greatly  excel  the  ones  earlier  con- 
structed in  size  and  conveniences.  The  study  of  many  of  these  homes 
revealed  that  as  the  Negroes  moved  from  rented  houses  to  those  built  by 
themselves  as  homes,  these  new  houses  were  on  an  average  one  room  larger 
than  the  ones  rented. 

Next  to  the  real  property  in  the  possession  of  the  Negroes,  their  bank 
deposits  attest  the  growth  of  a  more  healthy  economic  condition.  In  speak- 
ing of  this  matter,  the  president  of  one  of  the  flourishing  white  banks  said 
that  the  Negroes  had  just  begun  to  save  in  the  last  ten  or  twelve  years.  He 
added  that  they  were  learning  to  handle  their  money  to  much  greater 
advantage.  He  was  in  a  position  to  know,  for  Negroes  had  on  deposit  in 
his  bank  more  than  $25,000.00.  Inquiries  made  at  the  various  banks  of 
the  town  make  it  safe  to  estimate  the  savings  of  Negroes  on  deposit  in 
the  banks  of  Jackson  at  about  $200,000.00,  more  than  one-third  of  which 
is  to  be  accredited  to  the  two  Negro  banks.  Other  resources  than  the  real 
property  and  the  bank  deposits,  including  $75,000.00  worth  of  property 
owned  by  nine  Negro  churches,  will  bring  the  total  value  of  the  wealth  of 
the  Negroes  of  the  town  to  about  one  and  one-quarter  million  of  dollars. 

A  considerable  part  of  this  wealth  is  in  the  hands  of  a  few  individuals. 
The  aggregate  wealth  of  seven  of  these  more  well-to-do  Negroes  is,  by  a 


conservative  estimate,  at  least  $200,000.00.  This  wealth  is  largely  in  the 
form  of  real  estate.  In  fact,  an  increasing  number  of  enterprising  Negroes 
are  looking  to  their  real  estate  holdings  for  the  greater  part  of  their  incomes. 
About  five  of  these  men,  whose  exceptional  incomes  place  them  in  a  class 
by  themselves,  own  from  30  to  100  houses  each. 

Perhaps  the  most  conspicuously  successful  of  them  all  is  Dr.  S.  D. 
Redmond,  who  enjoys  the  largest  practice  of  any  of  the  Negro  physicians 
of  the  town.  Dr.  Redmond,  who  received  his  medical  training  at  the  Illinois 
Medical  College  and  Harvard  University  came  to  Jackson  about  ten  years 
ago  without  sufficient  means  to  establish  himself  properly  in  his  practice. 
Today,  at  36  years  of  age,  he  is  probably  the  wealthiest  Negro  in  the 
town.  He  is  president  of  the  American  Trust  and  Savings  Bank,  the 
older  of  the  two  Negro  banks,  and  a  stockholder  in  three  banks  controlled 
by  whites  as  well  as  in  one  of  the  power  and  light  companies.  He  owns 
much  valuable  property  in  various  parts  of  the  town,  receiving  rent  from 
more  than  100  houses.  Two  drug  stores,  one  of  which  is  situated  on  the 
chief  business  street  of  the  town,  belong  to  him  and  are  doing  a  paying 
business. 

While  it  is  true  that  two  Negro  enterprises,  the  bakery  of  H.  K.  Risher 
and  the  store  of  Alexander  Williams,  have  been  successfully  conducted  for 
more  than  twenty  years,  yet  it  has  only  been  comparatively  recently  that 
Negroes  generally  have  had  the  temerity  to  engage  in  independent  busi- 
nesses. More  than  80  per  cent,  of  the  enterprises  now  controlled  by  Negroes 
were  established  within  the  last  ten  years.  An  inquiry  into  the  condition 
of  46  of  the  older  and  better  established  of  these  concerns  showed  that 
41  had  been  in  existence  less  than  ten  years,  the  average  term  of  existence 
being  a  little  more  than  five  years. 

Although  there  are  a  few  white  store-keepers  who  cater  almost  exclu- 
sively to  Negro  patronage,  the  business  establishments  in  the  Negro  dis- 
tricts are  conducted  for  the  most  part  by  Negroes.  These  business  ventures 
now  number  about  100,  representing  a  wide  range  of  endeavor.  Among 
them  are  the  two  banks  already  mentioned,  four  drug  stores,  two  undertak- 
ing companies,  two  real  estate  agencies,  one  theatre,  one  first-class  bakery, 
four  shoemaking  and  repairing  shops  (one  doing  the  largest  business  of  its 
kind  in  the  town),  one  millinery  shop,  besides  numerous  stores,  barber 
shops,  and  other  smaller  concerns  of  various  kinds.  Many  of  these  estab- 
lishments in  size,  equipment,  and  volume  of  business,  compare  favorably 
with  similar  enterprises  among  the  whites.  Forty-four  of  these  concerns, 
including  five  contracting  firms,  did  about  $380,000.00  worth  of  business 
last  year  and  gave  employment  to  203  persons. 

The  pioneer  business  man  among  the  Negroes  is  H.  K.  Risher,  the 
baker,  who  at  one  time  practically  controlled  the  bakery  output  of  the 
town.  His  bakery  is  one  of  the  oldest  concerns  in  the  place,  having  been 
established  in  1881.  This  business,  which  amounts  to  about  $30,000.00  a 
year  and  gives  employment  to  12  persons,  is  conducted  in  one  of  the  best 
equipped  establishments  of  its  kind  in  that  section  of  the  State. 

The  two  Negro  Banks  represent  the  first  successful  attempts  on  the 
part  of  the  Negroes  to  organize  for  commercial  purposes.  The  older  of 
the  two,  the  American  Trust  and  Savings  Bank,  capitalized  at  $20,000,  was 
established  six  years  ago.  The  Southern  Bank,  capitalized  at  $10,000,  came 


into  being  two  years  later,  and  is,  in  a  sense,  an  outgrowth  of  the  older 
institution.  It  is  interesting  to  note  that  of  the  186  stockholders  of  these 
two  banks,  80  individuals  are  mechanics,  showing  how  these  enterprises 
are  influencing  a  class  of  workmen  who  make  fair  wages,  but  who,  per- 
haps, would  not  otherwise  invest  their  earnings.  The  Southern  Bank  in 
particular  has  been  unusually  successful  in  interesting  this  class  of  Negroes, 
70  out  of  its  100  stockholders  being  mechanics.  These  banks  have  had  a 
tremendous  influence  in  encouraging  the  masses  of  Negroes  to  save.  In 
July,  1908,  there  were  savings  deposits  in  these  two  banks  to  the  amount 
of  $73,000.00.  Their  place  in  the  business  interests  of  the  community  has 
been  fully  recognized  by  the  white  business  men  of  the  town.  This  appears 
from  the  fact  that  several  of  the  prominent  officials  of  the  Negro  banks 
have,  upon  invitation,  become  stockholders  in  banks  and  other  enterprises 
controlled  by  white  men. 

L.  K.  Atwood,  the  president  of  the  Southern  Bank,  belongs  to  the  small 
group  of  professional  Negroes  who  have  found  business  more  lucrative 
than  the  practice  of  their  professions.  Born  in  Willcox  County,  Ala.,  in 
1851,  he  was  sold  on  the  block  as  a  slave  when  18  months'  old.  His 
mother  bought  him  for  $300,  and  moved  with  him  to  Ohio.  Later  he 
attended  Lincoln  University,  Pa.,  graduating  in  1874.  Two  years  later  he 
was  admitted  to  the  bar  in  Mississippi.  He  has  served  twro  terms  as  a 
member  of  the  Mississippi  Legislature,  and  has  held  the  positions  of  United 
States  Commissioner  and  United  States  Deputy  Revenue  Collector  for  the 
Louisiana-Mississippi  district.  In  addition  to  his  connection  with  the  bank, 
he  is  actively  identified  with  the  Negro  enterprises  in  the  town.  He  has 
amassed  considerable  property,  and  is  generally  regarded  as  one  of  the 
shrewdest  of  the  Negro  business  men  of  Jackson. 

There  are  about  ten  Negro  contractors  in  the  town,  a  few  of  whom  are 
doing  a  rapidly  growing  business.  These  are  men  who  started  out  as 
ordinary  skilled  mechanics,  and,  after  accumulating  a  small  capital,  have 
launched  out  upon  an  independent  basis.  This  kind  of  enterprise  has  been 
made  possible  to  Negroes  by  the  unprecedented  amount  of  building  that 
has  been  carried  on  in  the  town  in  the  last  few  years.  Five  of  these  con- 
tracting companies  did  a  combined  business  last  year  of  $180,000.00,  and 
gave  employment  constantly  to  about  84  men.  C.  C.  Sims,  who  does  a 
business  that  compares  favorably  with  that  done  by  the  largest  white  con- 
tractors, was  born  on  a  farm,  near  Jackson,  43  years  ago,  and  spent  his 
youth  there  with  only  such  limited  advantages  as  a  Mississippi  rural  com- 
munity of  that  time  gave  to  the  Negro  boy.  Twenty-five  years  ago  he 
came  to  Jackson  where  he  picked  up  the  carpenter's  trade,  finally  engaging 
in  1893  in  an  independent  contracting  business.  During  the  last  year  his 
contracts  amounted  to  more  than  $75,000.00.  Mr.  Sims  frequently  employs 
whites  among  the  50  or  more  men  that  work  for  him.  His  pay  roll  for 
labor  is  between  $600  and  $700  a  week.  His  work  has  gained  for  him  such 
a  reputation  that  his  contracts  are  placed  in  many  of  the  towns  near 
Jackson. 

The  group  of  skilled  workmen  from  which  these  contractors  have 
sprung  form,  on  the  whole,  a  very  desirable  class  of  the  Negro  citizenship. 
They  receive  good  wages,  and,  in  increasing  numbers,  are  investing  their 
earnings  in  property  or  business.  Of  83  mechanics,  about  whom  information 


was  secured,  more  than  two-thirds  owned  their  homes.  Negro  mechanics, 
as  has  been  mentioned,  constitute  a  large  part,  more  than  two-fifths,  of  the 
stockholders  of  the  two  Negro  banks. 

A  goodly  number  of  the  skilled  Negro  laborers  are  carpenters,  there  being 
about  150  engaged  in  this  trade.  Besides  these,  there  are  about  40  brick- 
layers, 25  plasterers,  35  painters,  12  blacksmiths,  6  cotton  samplers,  2  engi- 
neers, 7  shoemakers,  and  a  number  of  others  distributed  among  several 
trades.  In  the  plastering  trade,  the  Negro  workmen  have  no  white  com- 
petitors. One  Negro  firm  of  contracting  plasterers,  Populus  and  Boise, 
did  more  than  $50,000.00  worth  of  business  last  year. 

In  the  case  of  the  Negro  women,  the  means  of  earning  a  living  are 
much  more  limited.  A  number  of  seamstresses  (about  35),  3  graduate 
nurses,  who  enjoy  lucrative  practices,  I  milliner,  and  2  stenographers  com- 
plete the  list  of  skilled  workers  among  the  colored  women  of  the  town. 

Mississippi  is  fertile  soil  for  all  kinds  of  secret  and  benevolent  organiza- 
tions for  Negroes.  The  strong  financial  condition  of  these  organizations 
in  the  State  appears  from  the  report  of  the  State  Insurance  Commissioner 
for  the  year  1907,  in  which  the  combined  value  of  the  certificates  in  force 
in  42  of  these  societies  is  stated  to  be  $24,728,709.00;  the  amount  collected 
by  the  42  organizations,  $709,670.00,  and  the  losses  paid,  $522,757.96.  No 
less  than  one-half,  and  probably  more,  of  these  societies  operate  in  Jackson. 
The  Jackson  Beneficial  Benevolent  Association,  a  purely  local  organiza- 
tion, which  has  been  in  successful  operation  for  almost  32  years,  is  a 
typical  instance.  This  society  has  a  membership  of  750.  Its  members  pay 
25  cents  a  month,  with  an  extra  assessment  of  50  cents  on  the  death  of  a 
member.  One  dollar  per  week  is  paid  to  sick  members,  and  $30.00  con- 
tributed to  the  burial  in  case  of  death.  During  the  year  1907,  $265.00  was 
received  by  sick  members,  and  $90.00  contributed  to  the  funeral  expenses 
of  those  lost  by  death.  The  society  also  makes  contributions  to  various 
charitable  purposes.  The  property  of  the  organization  consists  of  one  hall, 
valued  at  about  $4,700.00,  the  income  from  the  rent  of  which  averages 
about  $80.00  per  month ;  and  4  acres  of  land,  worth  $2,500.00,  to  be  used 
ultimately  as  a  cemetery. 

Jackson  has  always  been  regarded  by  Negroes  throughout  the  State 
as  a  good  town  for  members  of  their  race.  The  chances  of  making  a 
living  are  as  good  or  better  than  in  most  other  places  in  the  State.  The 
educational  advantages,  although  inadequate,  are  far  above  the  average. 
Furthermore,  there  has  been  comparatively  little  friction  between  the 
whites  and  blacks.  There  has  never  been  a  lynching  in  Jackson. 

A  conservative  element  of  well-to-do  white  citizens  have  shown  in  no 
unmistakable  manner  their  friendliness  towards  the  Negro  and  their  desire 
to  help  him  into  better  ways.  But  lately,  and  particularly  since  the  com- 
ing of  Governor  Vardaman,  the  thinking  Negro  has  come  to  realize  that 
conditions  are  changing  somewhat,  that  the  lines  are  being  drawn  closer. 
For  instance,  Negro  and  white  mechanics  have  for  many  years  worked 
together,  often  side  by  side,  without  friction;  but  frequent  instances  of 
opposition  on  the  part  of  white  workmen  incline  one  to  believe  that  com- 
petition on  racial  lines  is  increasing.  In  the  summer  of  1908,  the  white 
carpenters  started  a  public  campaign  against  the  employment  of  Negro 
carpenters  by  white  contractors.  Very  little  was  accomplished  in  this 


ii  iiiiltii  II 


direction,  except  to  intensify  a  growing  feeling  against  Negro  mechanics 
in  general.  As  it  is,  the  Negro  mechanics  are  needed  in  the  fast  growing 
town,  and  prejudice  must  wait  for  purely  economic  reasons  before  it  can 
work  them  much  harm. 

An  organization  of  interest  just  here  is  the  Bricklayers  Union,  No.  3 
(Miss.),  the  only  association  of  its  kind  in  the  town.  Its  membership  is 
composed  of  both  white  and  Negro  laborers.  The  Negroes  constitute  a 
majority  of  the  members  and  hold  all  of  the  offices  except  that  of  secretary, 
this  position  being  filled  by  one  of  the  white  members. 

The  better  class  of  Negroes  and  the  better  class  of  whites  are  coming 
closer  together  on  purely  economic  grounds.  The  Jackson  Negro  has  done 
well  in  business,  and  is  no  longer  a  negligible  factor  in  the  business  activities 
of  the  town.  There  are,  to  my  knowledge,  at  least  four  Negroes  who  are 
stockholders  in  business  concerns  conducted  by  white  men.  At  present 
Negro  contractors  do  by  far  the  greater  part  of  their  work  for  white  patrons. 
More  than  one-half  of  the  real  estate  business  of  a  particularly  wide-awake 
Negro  is  conducted  in  the  interests  of  white  customers. 

The  thinking  Negro  of  Jackson  has  come  to  feel  that  the  salvation  of 
the  Negro  in  Mississippi  must  be  worked  out,  first  of  all,  upon  economic 
lines.  And  he  is  putting  this  belief  into  practice  in  a  way  that  speaks  for 
itself,  not  altogther  ignorant  of  the  conditions  under  which  he  is  laboring. 


NEGRO  BANKS  OF  MISSISSIPPI 

•     BY 

CHARLES  BANKS 

MOUND  BAYOU,  MISSISSIPPI 

"Surely  no  better  proof  can  be  given  of  the  Negro's  desire  and  ability 
to  rise  and  become  a  respectable  member  of  society  than  the  production  of  a 
bank-book  with  a  good  balance,  or,  better  still,  the  title  to  a  farm  or  a  home 
free  of  debt.  The  saving  man  is  par  excellence  the  model  citizen — peace- 
able, sober,  industrious  and  frugal." — Andrew  Carnegie. 


In  summarizing  the  economic  progress  of  the  Negro  in  Mississippi  dur- 
ing the  past  ten  years,  that  made  in  banking  comes  in  for  no  inconsiderable 
part.  Beginning  with  the  Lincoln  Savings  Bank,  which  was  formerly  the 
Knights  of  Honor  Bank,  about  eight  years  ago,  Negro  banks  have  steadily 
grown  in  number  until,  to-day,  we  have  eleven  live,  active,  prosperous,  pro- 
gressive banking  institutions  dotted  over  the  state.  At  Vicksburg  we  have 
the  Lincoln  Savings  Bank,  under  the  management  of  W.  E.  Mollison ;  with 
resources  over  $60,000.00,  and  the  Union  Savings  Bank,  managed  by  T.  G. 
Ewing,  resources  over  $60,000.00;  at  Indianola  is  the  Delta  Penny  Savings 
Bank,  directed  by  W.  W.  Cox,  resources  over  $100,000.00;  at  Jackson  is  the 
American  Savings  Bank  and  Trust  Company,  managed  by  Dr.  S.  D.  Red- 
mond, resources  over  $60,000.00,  and  the  Southern  Bank  under  the  direction 
of  L.  K.  Atwood,  resources  over  $60,000.00;  at  Yazoo  is  the  People's  Sav- 
ings Bank,  managed  by  H.  H.  King,  resources  over  $40,000.00;  at  Colum- 
bus is  the  Penny  Savings  Bank,  managed  by  W.  I.  Mitchell,  resources  over 
$25,000.00;  at  Mound  Bayou  is  the  Bank  of  Mound  Bayou,  under  the 
management  of  the  writer,  resources  over  $100,000.00;  at  Natchez  is  the 
Bluff  City  Savings  Bank,  under  the  direction  of  Dr.  J.  B.  Banks,  resources 
over  $50,000.00;  at  Greenville  is  the  Delta  Savings  Bank,  under  the  man- 
agement of  John  W.  Strauther,  resources  over  $25,000.00;  at  Hattiesburg 
is  the  Magic  City  Savings  Bank,  organized  during  the  past  year,  under  the 
management  of  Dr.  J.  H.  Howard,  resources  over  $15,000.00,  this  being,  in 
fact,  the  reorganized  Peoples'  Bank  of  Hattiesburg,  which  went  into  volun- 
tary liquidation  after  the  assassination  of  its  founder  and  cashier,  the  late 
E.  D.  Howell.  It  may  be  well  here  to  state  that  the  retiring  bank  paid 
all  of  its  depositors  in  full,  in  fact  there  has  never  been  a  real  bank 
failure  on  the  part  of  Negro  banks  in  Mississippi  since  their  existence.  Dur- 
ing the  panic  of  1907,  so  far  as  I  have  been  able  to  learn,  and  I  am  a  stock- 
holder in  nearly  all  of  them,  only  two  banks  suspended  specie  payment,  and 
not  one  was  seriously  embarrassed,  emerging  from  that  trying  period 
stronger  and  more  trusted  than  before.  While  enjoying  the  confidence  and 
patronage  of  their  own  people,  it  is  a  noteworthy  fact  that  the  Negro  banks 


of  this  state  have  the  confidence,  respect,  and  goodwill  of  the  white  bankers, 
especially  their  neighbors.  In  most  cases  the  Negro  bank  clears  through  the 
white  bank  in  the  same  town,  using  it  largely  as  a  correspondent.  In  this 
way  it  develops  that  the  existence  of  the  Negro  banks  in  towns  where  there 
are  also  white  banks,  instead  of  being  hurtful  from  any  view  point  what- 
ever, are  mutually  beneficial.  Negroes  who  otherwise  would  not  be  reached 
and  induced  to  save,  but  for  the  existence  influence,  and  education  of  Negro 
banks,  are  made  depositors  in  Negro  banks,  who  in  turn,  by  using  the  local 
white  banks  as  depositories  and  correspondents,  bring  into  the  channels  of 
commerce  funds  that,  but  for  them,  would  not  be  available.  Of  course  the 
Negro  banker  does  not  pursue  this  policy  for  mere  conciliation.  The  policy 
is  in  line  with  that  of  all  small  banks,  be  they  white  or  black,  to  use  larger 
ones  as  correspondents  and  depositories,  as  well  as  to  clear  through  them, 
because  of  the  advantage  and  facilities  always  had  by  a  larger  institution, 
both  as  to  safety  and  making  par  points ;  but  in  the  operation  of  the  whole 
it  is  clearly  demonstrated  that  the  prosperity  of  the  Negro  banker,  as  well 
as  in  other  fields  of  endeavor,  instead  of  being  a  menace  to  the  Mississippi 
white  man,  is  really  and  substantially  beneficial  to  him  also.  I  hardly  think 
I  would  overdraw  the  facts  if  I  should  state  that  there  is  now  deposited  in 
white  banks  in  Mississippi  by  Negro  banks  one  quarter  of  a  million  dollars, 
and  this  can  be  safely  counted  on  as  the  average  daily  balance  maintained 
at  least  eight  months  in  the  year.  Nor  are  the  benefits  following  the  rise 
and  progress  of  Negro  banks  confined  to  this  State  alone,  for  nearly  every 
one  maintains  a  balance  with  correspondents  in  financial  centers  like  New 
York,  St.  Louis,  Memphis,  and  New  Orleans,  upon  which  they  draw  bills 
of  exchange,  and  with  whom  they  rediscount  as  occasions  require ;  and  right 
here  let  me  state,  in  justice  to  the  white  banker,  both  of  this  State  and  in 
the  financial  centers  named,  that  no  discrimination  is  made  against  the  Negro 
banker  when  it  comes  to  granting  him  lines  of  credit,  but  they  invariably 
grant  him  credit  based  mainly  on  the  average  daily  balance  maintained  and 
business  ability. 

If  you  ask  have  we  passed  the  experimental  stage  as  bankers  here,  I  an- 
swer, "yes,  in  a  measure,  we  have."  Of  course,  unlike  our  white  bankers, 
we  have  to  use  raw  material  as  bankers.  We  have  had  no  presidents  and 
cashiers,  not  even  bookkeepers  and  tellers,  who  took  hold  of  the  active  man- 
agement of  our  banks  after  long  years  of  practical  training  and  experience  in 
some  well  established  banking  institution,  but  have  had  to  feel  our  way  along, 
and  "read  while  we  ran."  The  recent  panic  and  its  subsequent  effects  were,  in 
a  measure,  calculated  to  test  the  stability  and  management  of  banking  insti- 
tuitons.  Be  it  said  to  the  credit  of  the  Negro  banker  in  Mississippi,  when 
the  mists  had  cleared  away,  not  one  was  found  swept  away.  Perhaps  the 
following  table  will  serve  to  indicate  the  progress  being  made :  In  1904  they 
had  resources  of  $50,000.00;  in  1905,  $95,000.00;  in  1906,  $140.000.00;  in 
1907,  $360,000.00;  and  in  1908,  $750,000.00.  From  this  table  we  can  safely 
predict  that  1909  will  find  us  way  above  the  million  dollar  mark.  Another 
statement  I  desire  to  make,  without  any  comment  whatever,  is  that  all  these 
banks,  save  two,  were  chartered  by  Ex-Governor  Vardaman. 

The  showing  made  by  the  banks  does  not  take  into  account  that  of  the 
fraternal  organizations  in  the  State,  which,  because  of  their  singular  fitness 
for  supplying  life  insurance  to  many  who  are  barred  by  the  large  Life  In- 

10 


surance  Companies,  are  quite  popular  as  well  as  helpful  in  this  State.  These 
organizations,  notably  among  which  are  the  Masons,  Odd  Fellows,  Knights 
of  Pythias  and  Knights  of  Tabor,  carry  a  reserve  fund  of  about  one  quarter 
of  a  million  dollars  to  beneficiaries  of  deceased  members.  In  most  cases, 
the  persons  managing  the  banks  of  our  State  are  of  high  moral  character, 
with  some  personal  means  and  fair  business  ability.  As  stated  above,  it  is 
not  possible  for  us  to  draw  from  a  stock  of  men  who  have  had  years  of 
training  in  banking,  perhaps  working  up  from  a  runner  to  president,  as  is  the 
case  with  our  white  friends,  but  all  things  being  considered,  the  management 
and  conduct  generally  of  the  institutions  are  creditable.  Judging  by  what 
Negro  banks  have  accomplished  in  this  State  in  the  past  few  years  and  their 
status  at  the  present  time,  we  can  confidently  look  forward  to  greater  things 
by  them  in  the  financial  world  in  the  next  decade. 

CHARLES  BANKS, 

Mound  Bayou,  Miss. 


11 


LIST  OF  PUBLICATIONS  OF  THE  COMMITTEE  OF  TWELVE. 


Any  one  may  obtain  a  copy  of  any  of  these  publications  now  in  print  by 
writing  to  the  Secretary  of  the  Committee  of  Twelve,  Hugh  M.  Browne, 
Cheyney,  Pa.,  and  enclosing  for  each  publication  desired  a  two-cent  paper 
wrapper  addressed  to  himself. 


*To  the  Colored  Men  of  Voting  Age  in  Alabama. 

Can  the  South  Solve  the  Negro  Problem  ?    Carl  S'churz. 

Why  Disfranchisement  is  Bad.    Archibald  H.  Grimke. 
*Voting  Instructions  to  Maryland  Voters. 
*What  a  Colored  Alan  Should  do  to  Vote. 

Garrison  Centenary  Leaflet. 

Slavery  and  the  Race  Problem  in  the  South.    Hon.  Wm.  H.  Fleming. 

The  Atlanta  Riot.    Ray  Stannard  Baker. 

The  Negro  in  America.    Andrew  Carnegie. 

Address  before  the  North  Carolina  Society  in  New  York. 
William  H.  Taft. 

Work  of  the  Colored  Law  and  Order  League  of  Baltimore,  Md. 
James  H.  N.  Waring. 

Study  of  the  Negro's  Progress  in  Jackson,  Miss.     Dr.  W.  Woodard. 

Negro  Self -Help  in  Education.    R.  R.  Wright,  Jr. 

Negro  Self-Help  in  Home  Getting.    Kelly  Miller. 

The  Convict  Lease  System.    George  W.  Forbes. 

Negro  Self-Help  in  Hospital  Work.    George  C.  Hall,  M.  D. 

PARAGRAPHS. 

East  Bessemer,  Ala.  Negro  Banks  in  Mississippi. 

Some  Successful  Negro  Business  Men. 

Business  Co-operation  between  White  and  Negro  Men  in  Helena,  Ark. 
*Out  of  print. 


12 


"I  believe  also  that  the  Negro  is  to  continue  to 
ascend  morally,  educationally  and  financially.  I  am 
quite  resigned  to  our  own  and  the  Negro  races  oc- 
cupying the  South  together,  confident  that  as  time 
passes  the  two  will  view  each  other  with  increasing 
regard,  and  more  and  more  realize  that,  destined 
as  they  are  to  dwell  together,  it  is  advantageous 
for  both  that  they  live  in  harmony  as  good 
neighbors  and  labor  for  the  best  interests  of  their 
common  country."  — ANDREW  CARNEGIE. 


THE  UNIVERSITY  LIBRARY 
UNIVERSITY  OF  CALIFORNIA,  SANTA  CRUZ 


This  book  is  due  on  the  last  DATE  stamped  below. 
To  renew  by  phone,  call  429-2756 


FEB 1 7  '87 

FEB 


50m-9,'72(Q4585s8)—  3A-1 


E1 85.93. M6W8  1909a 


3  2106  00058  9025 


